All Forum Posts by: Penny Clark

@Jarrett McAllister, Welcome to BP! This is the best place to go for REI! My husband did that with the three day seminar and we got our money back. They always start low and then on the third day hit you up for 30-50,000 sale. Their pitch people are very good so put handcuffs on your wallet, or better yet don't bring it at all! Instead, keep learning all you can here, and guess what, it's FREE!

Good luck in your endeavors!

@Jonathan Streufert, if you are living in one of the units you purchase, then yes, it can be advantageous for you to call yourself the property manager. However, if you do this and do not want them to know you are the owner, will you have a separate company for your rental funds and service requests to go through? 

For some owners who live on site, having your tenants know is not an issue. From the beginning, they outline for the tenants when to contact for service or repair requests, when and how to pay rent and keep the relationship cordial but businesslike. It really depends on your comfort level with handling people.

@Amy McArthur, everything is negotiable. I would ask BP members who own rentals in your area to recommend a company they use. I understand having a cancellation fee, but an entire month's rent seems steep to me. Management fees can be either on a flat fee or percentage basis and 10 percent is not uncommon if the area lacks competition. Insist that they provide you an estimate on all repairs prior to doing them and you should choose the amount for your monthly repair limit. For emergency repairs, have them outline what those are (burst pipe, roof leaks, broken windows or locks, fallen trees, etc.). I would not allow them tenant discounts for paying rent early. Early to most tenants is before the 5th. Don't allow them commission on lease to own either. Why would you do this if you just purchased the property? There is also no need for them to charge you advertising to rent the property. Most PM companies do fine using Zillow, Hotpads, Rent.com, Craigslist, etc. and it costs them nothing.

Push back and tell them what you will accept and what you won't. If they truly want your business, they will negotiate. If not, you are better off without them.

@Tamir Alush, If you have pics of before tenant moved in, that would help your case. However, since you didn't mention it, I'm assuming the previous landlord provided little or no documentation when you purchased the property. Consider this a lesson learned and be prepared to pay up. In Cali, which is a very tenant friendly state, you must return the security deposit to tenant within 21 days with copies of receipts showing repairs done in order to take the deduction. If you fail to do so and tenant contests it, landlords can face not only returning the full deposit (no matter what condition it is in) and paying any legal costs associated with it. The judge may also impose a steep fine on the landlord. The judge is almost always on the side of the tenant because it is assumed that the tenant is uninformed in matters of the law.

Bottom line is learn the laws in your state - better than your tenants and understand your landlord rights. Most tenant disputes that end up in court revolve around the security deposit.

Also, when purchasing a property with inherited tenants, assume the current owner didn't do anything right and get as much documentation as you can on the tenants ( inspection reports, current contact information, payment history, etc.) prior to closing. If you have nothing and still wish to purchase the property, assume the worst and have a fund set aside in case you need to start the eviction process.

Let us know how it goes!

Do You Need A Quality Manager?

license info: 01986692

Are you looking for a property manager who truly cares about protecting your assets? Do you need a manager who will respond to your questions quickly and not tack on extra fees for paying bills on your behalf or doing inspections and other services? Then why gamble on mediocre management and get the best!

At Eagle Property Management, we give your rental the attention it deserves and treat your property with the same care we do our own. We charge a flat fee of $85 per month and only 35 % of the first gross monthly rent to find you a highly qualified, screened "World Class" tenant for your rental. Our management fee includes:

⢠Rent collection
⢠Bill payment
⢠Scheduling and supervising normal maintenance and repairs of property
⢠Issuing of 3-day notices
⢠County required inspections and walk-through inspections
⢠Financial reports for owners

Our tenant placement fee includes:
⢠Screening credit report, criminal background, income/employment verification, rental history
⢠Walk through inspections
⢠Advertising your rental
⢠Conducting showings
⢠Follow-up emails and calls to all prospective tenants


Communication is consistent between us, you, the owner, and your tenants. Our online portal system allows you  to notify us of any situation at anytime and we make it our policy to return all calls and emails within 24 hours or less.

So if you are looking for management that can give your property the attention it deserves at a price you can afford, call Penny at 916-670-2286

@Virginia Jones, we all start out wanting to be nice in this business because who wants to be the stereotypical mean and greedy landlord we've seen in the movies, right? Then WE LEARN. 

If you can push this tenant out of the lease, do it. Unfortunately, you have already trained these tenants how to treat you and the requests will not stop with making improvements. This is just the beginning, because their requests have now ventured into lease to own negotiation. The next thing they'll be doing is negotiating on when they pay the rent. Let them know you will not be making any more improvements to the unit or allowing them to do any modifications to the unit. If that is unacceptable to them, inform them you will let them out of the lease. BTW, this is another reason to start out with a month to month agreement if you are new to being a landlord.

If they want to stay and you can't get out of the lease, hire a property management company and have all communication with the tenant go through them. Let the PM be the tough guy while you get up to speed on training tenants instead of having them train you. 

Good luck and let us know how it goes!

@Chadd Chase, I'm a property manager by trade but I hired a management company to oversee our rental that is 90 minutes away, because of all of the reasons above. Before hiring a management company, review them on Yelp and pay attention to what the owners say. You might also try asking around for a PM reference from BP members who have rentals in the area and whose services they use.

Ask to see the company's PM owner's agreement prior to signing so you have time to examine the costs and services covered by those costs. Specifically look at these five things:

- lease up fee

-management fee

-cancellation fee

-maintenance surcharge fees, if any (charging a percentage fee to schedule an in house vendor)

If there are no surcharge fees, ask if you are required to keep a reserve fund for maintenance or if you can set a minimum amount spent on a monthly basis. Doing so will help you control your costs.

- additional fees (fees tacked on for paying utilities, insurance, pool service fees on your behalf, for example

When you are contacting these PM companies, pay attention to how quickly they respond to you. This was the deal maker with me when I was doing a search. PM #1 never got back to me after I emailed and left a phone call. PM #2 got back to me within a hour and got my business.

Good luck in your endeavor!

@Lorayne McKelvy-Morris, Welcome to BP!

@Anastasia Orth Welcome to the BP Community! You will find that this is absolutely the best place for information on real estate investing. Feel free to PM me if you have any questions regarding managing your property. Always glad to share!

@Victoria L., think of it like a funnel in getting your house rent ready. First, start learning what is necessary to satisfy health and safety codes for rentals in your City/State. You can find this information by consulting your local apartment housing association or state department of consumer affairs. For example, in California, a smoke detector must be inside every sleeping area and must operate on a 10 year battery. Toilets that use more than 1.6 gallon per flush must be replaced.

Second, look at areas of the home, room by room that may be in need of minor repairs: For example, correction of any plumbing leaks or drainage issues, torn window screens, replacement of missing roof shingles, repair of broken or leaking sprinklers, etc. Do a check on the major appliances and HVAC system in the home. It's amazing how the garbage disposal or dishwasher stops working or needs repaired when a tenant moves in and starts using it.

Third, look at the property with a new set of eyes: What features will you highlight? A huge backyard even if it is all dirt may appeal to someone if it is fenced. I wouldn't bother putting in a lawn or do expensive landscaping because tenants cannot be relied on to water the grass or even trees and plants. I also wouldn't put a lot of money into installing expensive counter tops, or lighting fixtures. If you have the extra money, consider replacement of carpet with tile or vinyl flooring  which lasts much longer and is more durable. Generally for your basic B-C class property, renters are looking for more square footage and storage space, amenities that are in good repair and safety and security (exterior lighting, fencing, automatic garage doors, door and window locks that are easy to operate). 

Fourth, add a few decorative touches to make the home more appealing: Place a flower pot full of marigolds or brightly colored welcome mat by the front door; Set a colorful bowl of fruit on the kitchen counter; Install some decorative shelving on bathroom wall; Paint one of the walls in the living or family room an accent color that harmonizes with the rest of the room.

Fifth, learn to live with and accept what that renter does with YOUR house. Many owners who lived in the property prior become upset if the tenant is not treating the home as they would. As long as they are not damaging it (no holes in walls, windows are intact, no major stains on flooring) and keeping it fairly clean that should be enough. After all, it's a rental now.

Congratulations on making the transition to rental owner and share your experience!